Cheapest Ways to Take Card Payments in 2026

Tyl by NatWest is the cheapest all-round option on this page in 2026, especially if you take a mix of in-person, phone, payment-link, and online payments and want predictable pricing across those channels.

After comparing 18 UK providers across five core assessment areas and 23 subcategories, Tyl stood out because it publishes a flat 1.39% + £0.05 fee for UK and European personal cards, does not add an extra transaction charge just because a payment is online or over the phone, and rents 4G card machines from £13.99 + VAT per month.

The other best-value options here solve different cost problems. Revolut has the lowest published UK card-present fee on this page, starting from 0.8% + £0.02, PayPal Point of Sale has the lowest upfront reader price at £29 + VAT, and takepayments can work out cheapest at higher volumes if you negotiate a strong quote.

Ultimately, the cheapest way to take card payments depends on your monthly turnover, average transaction size, and whether you mainly sell in person, remotely, or across both. Read on for our full review of the cheapest merchant services compared.

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Overview: The Cheapest Merchant Services for Taking Card Payments

These are our top picks for cheap merchant service providers:

1. Tyl by NatWest: Cheapest 4G Plans

• Transaction fees: 1.39% + £0.05 for UK/EU personal cards; 1.99% + £0.05 for all other cards
• Card machines: £13.99 / £14.99 / £19.99 per month + VAT
• Contract: 12 months for card machines; more flexible terms for some online and Tap to Pay products

What makes Tyl by NatWest a low-cost way to take card payments?

Simple published pricing for smaller businesses: Tyl publishes 1.39% + £0.05 for UK and European personal cards and 1.99% + £0.05 for all other cards. That is not the lowest card-present rate on this page, but it is one of the clearest.

No extra transaction charge just because the payment is remote: Tyl says it does not add an extra transaction charge for card-not-present payments, payments by link, payments taken online, international card payments, or refunds. That can keep blended costs lower for mixed-channel sellers than providers that heavily penalise remote payments.

Low rental pricing for 4G and countertop terminals: Tyl’s PAX A80 starts from £13.99 + VAT per month, the PAX A50 from £14.99 + VAT, and the PAX A920 Pro from £19.99 + VAT. For businesses that want a proper rented terminal rather than a buy-once reader, that is still competitive.

Next-business-day settlement: Tyl advertises next-business-day settlement as standard, which matters if you want low fees without waiting several days for your money.

Tap to Pay with no hardware rental: NatWest Tap to Pay is priced at £0.00 monthly hire, so mobile sellers can take contactless payments on a compatible iPhone or Android device without renting a terminal.

Why can this make Tyl by NatWest cheap in 2026?

Tyl is cheapest when you want one provider for in-person and remote payments and you do not want the usual pricing jump when a customer pays by link, over the phone, or through a checkout page.

Who’ll get the most value for money with Tyl by NatWest?

• Established small businesses taking mixed payments: Tyl suits shops, salons, clinics, and service firms that take payments in person and remotely.
• Businesses that want a rented 4G terminal: if you want a proper device with next-day settlement, Tyl is easier to justify than many quote-only rivals.
• Mobile sellers that want hardware-free contactless: Tap to Pay removes monthly terminal rental altogether.

What may cost extra with Tyl by NatWest?

• Online checkout package: Tyl’s full online payments package costs £14.95 + VAT per month. That includes payment links, a checkout page, and a virtual terminal, but it is still an extra monthly cost.
• American Express and PCI-related charges: Amex pricing is quote-based, and Tyl says additional PCI DSS fees can apply if your business is subject to extra requirements.
• Eligibility is narrower than some pay-as-you-go rivals: Tyl’s quote flow asks whether your annual card turnover is above £10,000, so it is not the most obvious fit for very small or highly seasonal sellers.

When may Tyl by NatWest not be the cheapest fit?

If you only take occasional in-person card payments, a buy-once reader from Revolut or PayPal can work out cheaper overall than 12 months of terminal rental. It is also a weaker fit if you need multi-currency settlement.

Best alternatives to Tyl by NatWest

• Revolut – for the lowest published UK consumer card-present rate: cheaper on domestic in-person fees, especially if you are already using Revolut Business.
• PayPal Point of Sale – for the lowest upfront hardware cost: better if you want to buy a cheap starter reader and avoid monthly hardware rental.
• takepayments – for higher card turnover: stronger if your volume is high enough for a negotiated merchant-account deal to beat flat rates.

2. Revolut: Cheapest Fixed Transaction Fees

• Transaction fees: 0.8% + £0.02 to 2.8% + £0.20
• Card machines: £49 one-time fee for Revolut Reader
• Contract: Zero-contract for acquiring, but a Revolut Business plan is required

What makes Revolut a low-cost way to take card payments?

The lowest published UK consumer card-present fee on this page: Revolut starts from 0.8% + £0.02 for in-person payments and 1% + £0.20 for online payments. That is extremely competitive if most of your sales come from UK consumer cards.

Fast settlement: Revolut says settled funds land within 24 hours, including weekends, which is one of the fastest standard payout claims on this page.

Buy-once hardware: the Revolut Reader costs £49 one-off, so you avoid monthly terminal rental entirely. That can make a big difference for small businesses that do not want a 12-month hardware commitment.

Strong multi-currency support: Revolut lets you accept and settle in 35+ currencies, which makes it more useful than Tyl for businesses serving tourists or international customers.

One dashboard for banking and payments: if you already use Revolut Business, having card takings inside the same environment can cut admin overhead and simplify cashflow tracking.

Why can this make Revolut cheap in 2026?

Revolut is cheapest when your sales are mostly UK consumer card-present, you want buy-once hardware, and you value fast settlement and multi-currency support.

Who’ll get the most value for money with Revolut?

• Small businesses and sole traders selling mostly in person: especially if they want to avoid monthly terminal rental.
• Businesses taking some international payments: Revolut is much stronger than Tyl on multi-currency settlement and international business banking.
• Pop-ups and mobile sellers: a £49 reader and hardware-light setup are easy to justify.

What may cost extra with Revolut?

• You need a Revolut Business plan: payment acceptance is included with Revolut Business plans, but those plans start from a monthly subscription rather than £0.
• International and commercial cards cost much more: in-person pricing rises to 2.6% + £0.02 for international and domestic commercial cards, and online pricing rises to 2.8% + £0.20.
• Tap to Pay on iPhone adds a surcharge: Revolut adds £0.08 per Tap to Pay transaction on top of its normal processing fees.

When may Revolut not be the cheapest fit?

Revolut is often not the cheapest overall if you take lots of international or business cards, process many low-value online transactions, or do not want an ongoing Business plan subscription layered into your setup.

Best alternatives to Revolut

• Tyl – for simpler mixed-channel pricing: better if you want similar fees across in-person, phone, and link payments.
• PayPal Point of Sale – for flatter pricing with no Business subscription: easier to model if you want a pay-as-you-go setup.
• takepayments – for bespoke higher-volume pricing: stronger when your turnover is high enough to negotiate better blended rates.

3. PayPal Point of Sale: Cheap Card Machines

• Transaction fees: 1.75% in person; 2.9% + £0.30 payment links; 3.4% + £0.20 manual entry
• Card machines: £29 + VAT to £149 + VAT one-time fee
• Contract: Zero-contract

What makes PayPal Point of Sale a low-cost way to take card payments?

No monthly fee for in-person payments: PayPal Point of Sale is still a straightforward pay-as-you-go option, which keeps total costs low for small or seasonal businesses.

Low upfront hardware cost: the starter PayPal Reader is £29 + VAT for one eligible new-business user, making it the cheapest reader upfront on this page.

Simple in-person pricing: PayPal charges a flat 1.75% for card and contactless payments. That is easy to model, even if it is not the absolute lowest rate here.

Free Point of Sale app and hardware-free Tap to Pay: the app is free to download, and PayPal says Tap to Pay does not add extra fees beyond its standard card rate.

Flexible payouts: PayPal says funds can be available in your PayPal balance quickly, while standard transfers to a bank account typically take one to two business days.

Why can this make PayPal cheap in 2026?

PayPal is cheapest when you want the lowest possible upfront spend, no contract, and a simple flat in-person rate without renting hardware every month.

Who’ll get the most value for money with PayPal?

• New, mobile, or seasonal sellers: ideal if you want to start quickly without committing to monthly fees.
• Businesses that want the cheapest starter reader on this page: the £29 + VAT Reader is still the headline appeal.
• Very small teams that want a free POS app: the software is more capable than many zero-monthly-fee setups.

What may cost extra with PayPal?

• Remote payments cost more than in-person: payment links are 2.9% + £0.30, which is a big jump from 1.75% face to face.
• Manual card entry is expensive: 3.4% + £0.20 can make phone orders and keyed payments disproportionately costly.
• The all-in-one terminal costs more upfront: the PayPal Terminal starts from £149 + VAT, so the cheapest-hardware story mainly applies to the Reader.

When may PayPal not be the cheapest fit?

PayPal is often not the cheapest overall if you take lots of remote payments, rely on manual entry, or process enough in-person volume for lower fixed-fee rivals to overtake it.

Best alternatives to PayPal

• Revolut – for lower in-person transaction fees: stronger if most of your card-present payments are UK consumer cards.
• Tyl – for cheaper mixed-channel selling: better if you also take lots of phone, link, or website payments.
• takepayments – for higher-volume merchants: worth quoting if your turnover is high enough to beat flat-rate pricing.

4. takepayments: Custom Pricing Packages

• Transaction fees: Custom quote
• Card machines: From £25 + VAT per month
• Contract: 12 months minimum

What makes takepayments a low-cost way to take card payments?

Quote-based pricing can beat flat rates at higher volumes: takepayments does not publish one standard transaction fee. Instead, it builds a tailored quote around your turnover, card mix, and setup. That makes it harder to compare instantly, but it can be cheaper than flat-rate providers if your sales are high enough.

Next-working-day settlement: takepayments advertises next-working-day settlement, which helps reduce cashflow pressure for established SMEs.

Integrated package for larger merchants: if you want terminals, merchant acquiring, and online tools under one roof, takepayments can be good value despite the monthly rental because it is designed as a fuller payments package.

Why can this make takepayments cheap in 2026?

takepayments is cheapest when your transaction volume is high enough for a bespoke quote to outweigh monthly terminal rental and contract commitments.

Who’ll get the most value for money with takepayments?

• Higher-volume hospitality and retail businesses: restaurants, cafés, bars, and busy independent stores are the clearest fit.
• Merchants that want a full payments bundle: takepayments works best when you want terminals, acquiring, and online tools together.
• Businesses that value support during setup: its onboarding and seven-day support are stronger than many pay-as-you-go rivals.

What may cost extra with takepayments?

• You may have separate acquiring costs: takepayments says businesses must also enter into a separate contract with an acquiring bank, and transaction charges and other fees apply there too.
• Online tools and PCI-related costs can be billed separately: terminal hire is not the whole picture, so ask for virtual terminal, online payments, PCI, and any other monthly charges in writing.
• Minimum monthly service charges may apply through the acquirer: that matters if your volume falls below expected levels.

When may takepayments not be the cheapest fit?

If your card volume is low or irregular, a no-contract provider with a buy-once reader is usually cheaper overall than paying monthly rental for 12 months.

Best alternatives to takepayments

• Revolut – for low, fixed in-person fees: better if your business is smaller and card-present heavy.
• PayPal Point of Sale – for the quickest low-cost setup: stronger if you want to be live fast without contract complexity.
• Tyl – for clearer published pricing: easier to budget if you want more certainty before you speak to sales.

Merchant Service Fees and Hidden Charges Explained

The cheapest setup usually comes down to more than the headline transaction fee. These are the costs that most often change the real monthly total:

• Transaction fees: some providers charge one flat rate, while others price by card type or quote each merchant individually.
• Card machine costs: you either buy hardware upfront or rent it monthly. Neither is automatically cheaper; it depends on how often you take payments.
• Monthly account or gateway charges: these often sit on top of transaction fees for online checkouts, virtual terminals, or merchant-account services.
• PCI-related costs: some providers include PCI support, others only charge it for certain merchants, and some push it into quote-based or acquirer-led fees.
• Remote-payment extras: payment links, virtual terminals, online checkouts, and keyed entry often cost more than face-to-face payments.

Certain costs, such as chargebacks, refund treatment, and PCI-related charges, are less visible than standard transaction fees. This table shows the safer like-for-like picture to check before you sign.

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What Is the Cheapest Card Reader for Each Provider?

This table compares the cheapest hardware option shown on this page for each provider, focusing on the details that most directly affect cost and usability.

Hardware pricing and availability can change through promotions or negotiated quotes. This table sticks to the cheapest device positioning used on the page so readers can compare like for like.

Buying Guide: How To Choose a Cheap Payment Service Provider

The cheapest provider usually comes down to four things: transaction fees, monthly costs, contract terms, and how quickly you get paid. Use the checks below to compare like for like.

1) Check and compare transaction fees

• Flat-rate fees: predictable and usually easier for smaller businesses to budget.
• Card-type or quote-based fees: can be cheaper for higher-volume merchants, but only if your quoted blend really beats the simpler rivals.

If you need a deeper breakdown of how these fees work, link out to your in-depth card processing fees guide.

2) Compare pricing tiers and what’s included

Look beyond the headline rate and price the full setup you actually need:

• Card machines or readers
• Gateway or checkout fees
• Virtual terminal or phone payments
• Payment links or invoicing
• Reporting or POS software

If you do not sell online, avoid paying monthly for a gateway you will not use.

3) Be mindful of contract lengths

Longer contracts can reduce the per-transaction cost, but they also reduce flexibility. If your sales are seasonal or inconsistent, a no-contract setup is usually safer than locking into 12 months of rental or merchant-account fees.

4) Choose providers with quick fund transfer times

Faster settlement can matter as much as a lower fee if your cashflow is tight.

If you already use accounting, ecommerce, booking, or POS software, check that your payment provider supports it properly. Cheap pricing loses its appeal quickly if you create more admin elsewhere.

6) Prioritise PCI compliance and fraud prevention measures

Always check whether PCI support is included, conditional, or billed separately. Some providers include more of the security burden in the product, while others pass more of it into quote-based or acquirer-led fees.

7) Consider reporting tools as part of total value

More advanced reporting is not always free. But if better reporting saves you time every week, it can still be worth paying for.

8) Check how easy the system is to set up

The cheapest option on paper is not automatically the cheapest to deploy. For small businesses, setup time and admin effort are real costs too.

9) Assess help and support options

If payments are business-critical, support should sit near the top of your buying checklist. Weekend or seven-day support can matter more than a tiny difference in headline fee.

How We Tested and Ranked the Cheapest Ways To Take Payments

At Expert Market, we compared 18 UK payment providers across five main assessment areas and 23 subcategories for this guide. The goal was not just to find the lowest advertised rate, but to find the providers that are actually cheapest once hardware, software, settlement, and contract costs are factored in.

Where we had hands-on access, I also tested the practical buying tasks that matter most to small businesses: setting up hardware, checking how easy it is to take a sale, reviewing settlements and reports, and judging how much admin the system adds to day-to-day running.

Transaction fees and total processing cost

I looked first at published in-person, online, keyed, and payment-link pricing, plus whether rates change by card type. This is the core of any cheap-payments comparison, but it is only one part of the real annual cost.

Hardware and monthly costs

I compared card reader prices, terminal rental, gateway subscriptions, virtual terminal costs, and any other recurring charges that push the real monthly total up.

Payout speed and cashflow impact

I reviewed each provider’s published settlement times because a cheaper fee can still be poor value if you wait too long to access your money.

Contracts, flexibility, and hidden charges

I checked contract length, quote dependence, PCI-related costs, refund treatment, chargeback fees where published, and how easily a business can leave or scale the setup later.

Software, reporting, and day-to-day usability

I assessed the operational side too: how good the dashboards are, whether payment links or online tools are included, what reporting is available, and how easy the overall setup is to live with once you are taking payments regularly.

This framework is designed to answer the question small businesses actually care about: what will this provider really cost me over a month or a year, not just on the pricing page?

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